Pension Data for Sam Adams Inc

question 36

Essay

Pension data for Sam Adams Inc. include the following for the current calendar year:
Discount rate, 8%
Expected return on plan assets, 10%
Actual return on plan assets, 9%
Service cost $400,000
Required:
1) Determine pension expense for the year.
2) Prepare the journal entries to record pension expense and funding for the year.
$$\begin{array}{l}\text { January 1: }\\\begin{array} { l r } \text { PBO } & 3,000,000 \\\text { ABO } & 2,000,000 \\\text { Plan assets } & 3,200,000 \\\text { Amortization of prior service cost } & 30,000 \\\text { Amortization of net gain } & 7,000 \\\text { cember 31: } & \$ 275,000 \\\text { Cash contributions to pension fund } & 310,000\end{array}\end{array}$$

---

Definitions:

APC Exam

A professional examination, potentially referring to the Assessment of Professional Competence, required in certain professions to assess one's ability to practise competently within that profession.

NALA

The National Association of Legal Assistants, a professional association for legal assistants and paralegals in the United States.

State Bar Associations

Professional organizations of lawyers that are responsible for the regulation and discipline of attorneys within a specific state.

Postgraduate Certificates

Educational qualifications awarded after completing degree-level studies, offering specialized expertise in a particular field.